Hindalco Industries fell 1.17% to Rs 105.60 at 10:42 IST on BSE after the company's US subsidiary Novelis reported its Q3 results on Monday, 10 February 2014.
Meanwhile, the BSE Sensex was up 71.20 points, or 0.35%, to 20,405.47
On BSE, so far 2.21 lakh shares were traded in the counter, compared with an average volume of 9.29 lakh shares in the past one quarter.
The stock hit a high of Rs 107.15 and a low of Rs 104.45 so far during the day. The stock hit a 52-week high of Rs 126.75 on 11 December 2013. The stock hit a 52-week low of Rs 83.05 on 7 August 2013.
The stock had underperformed the market over the past one month till 10 February 2014, falling 3.26% compared with the Sensex's 2.04% fall. The scrip had also underperformed the market in past one quarter, declining 8.24% as against Sensex's 1.61% fall.
The large-cap company has an equity capital of Rs 206.46 crore. Face value per share is Re 1.
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Hindalco Industries' US subsidiary Novelis reported its Q3 results on Monday, 10 February 2014. Novelis reported net income attributable to its common shareholder of $13 million for the third quarter of fiscal 2014. Excluding certain tax-effected items, net income was $23 million for the quarter, up $14 million compared to $9 million reported in the same period a year ago.
Adjusted EBITDA for the third quarter of fiscal 2014 was $203 million, up 10% compared to $185 million reported for the same period in the prior year. The increase was driven primarily by higher global shipments partially offset by continued pricing pressures in North America and Asia and reduced scrap benefits from lower aluminum prices.
Commenting on the company's performance, Phil Martens, President and Chief Executive Officer for Novelis said, "Our execution in the third quarter was excellent, with year-over-year shipment growth in every operating region. We have made great progress in the commissioning of our major expansions and we are now seeing the benefits of some of these projects in our results. While external market pressures partially offset the bottom line impact of this volume growth, we are confident about the realizable potential for this business as the new projects come on-line."
Shipments of aluminum rolled products totaled 721 kilotonnes for the third quarter of fiscal 2014, an increase of 11% compared to 647 kilotonnes for the same period last year. Despite being a seasonally low production quarter, shipments were up one percent sequentially compared to the second quarter. Net sales for the third quarter of fiscal 2014 were $2.4 billion, up 4% compared to the prior year resulting from higher shipments partially offset by a 12% decrease in average aluminum prices and lower conversion premiums.
The company continues to see strong demand for aluminum flat rolled products globally, particularly in the automotive segment. In December, the company announced a $205 million investment to further expand its global automotive aluminum capacity to 900,000 tons annually.
"We are the world's leading supplier of aluminum automotive sheet, pioneering advancements in cutting edge technologies and facilities to meet our customers' needs," said Martens. "Ford's introduction last month of the aluminum intensive F-150 pickup truck will truly be a game changer for both the automotive and aluminum industries and Novelis is in an excellent position to capture the significant growth ahead."
For the third quarter of fiscal 2014, Novelis reported liquidity of $806 million. Free cash flow was negative $61 million for the third quarter of fiscal 2014, in part due to $107 million in semi-annual bond interest payments and $157 million in capital expenditures. "We have successfully implemented several strategic actions to improve cash flow particularly around working capital activities, resulting in significantly higher free cash flow results than last year," said Steve Fisher, Chief Financial Officer for Novelis.
Hindalco Industries declares Q3 result on 13 February 2014. The company's net profit declined 0.5% to Rs 357.11 crore on 2.1% growth in net sales to Rs 6245.56 crore in Q2 September 2013 over Q2 September 2012.
Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.
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